We estimate the effect of tax rebates offered by Canadian Provinces on the sales of Hybrid Electric Vehicles. We find that these rebates had a large and positive effect on the market share of hybrid vehicles and that Intermediate cars, Intermediate SUVs and some high performance compact cars...

If time and effort are required to accurately ascertain the lifetime value of energy efficiency for a durable good, consumers might rationally ignore energy efficiency. This paper argues that such inattention may be rational in the market for automobiles and home appliances. To do so, it...